Tmt Investments Regulatory News (TMT)

24 August 2016

TMT INVESTMENTS PLC

("TMT" or the "Company")

Half year report for the six months to 30 June 2016

TMT Investments PLC, which invests in high-growth, internet-based companies across a variety of core specialist sectors, is pleased to announce its unaudited interim results for the half-year ended 30 June 2016.

· Relatively quiet first 6 months of 2016 as portfolio matures, following an exceptional 2015

· NAV per share of US$1.91 (unchanged from US$1.91 as of 31 December 2015)

· 1 profitable partial cash exit (Depositphotos)

· 2 impairments (WhalePath and Adinch)

· US$650,000 allocated to new and follow-on investments (Vinebox, Send A Job, and Attendify)

· Many portfolio companies continue to experience rapid growth

Alexander Selegenev, Executive Director, commented: "We are pleased to have effected a major partial disposal in cash of our stake in stock photo marketplace Depositphotos for US$5.83m net. This allowed us to keep investing in promising companies during the first half of 2016 as well as reinvesting in our most successful portfolio companies to date as they continue to grow. As the portfolio matures, it is not surprising to register some impairments, of which we made two in the first half of this year. Our well-diversified portfolio of 34 current investments registered a NAV of $1.91 per share as of 30 June 2016, in line with the value as of 31 December 2015".

Alexander Selegenev added: "TMT has successfully exited from 8 investments (including two partial exits) since inception in 2010 to date. This demonstrates the management team's ability to identify highly promising companies with exceptional leadership at an early stage. We are continuing to closely review potential exit and secondary market transactions in our portfolio".

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About TMT Investments

TMT Investments PLC invests in high-growth, internet-based companies across a variety of core specialist sectors and has a significant number of Silicon Valley investments in its portfolio. Founded in 2010, TMT has net assets of US$53m and has invested in over 40 companies to date. The company's objective is to generate an attractive rate of return for shareholders, predominantly through capital appreciation. The company is traded on the AIM market of the London Stock Exchange. www.tmtinvestments.com

EXECUTIVE DIRECTOR'S STATEMENT

Portfolio Performance

Following the exceptional performance in calendar year 2015, in which over 10 of the Company's portfolio companies experienced positive revaluations for a total of US$18.5 million, the first half of 2016 was relatively quiet as the portfolio continued to mature. A key highlight was the partial disposal of our successful investment in stock photo marketplace Depositphotos, which significantly improved the Company's cash position. We continue to pursue a conservative approach to valuations of poorly performing assets and wrote down two of our investee companies at the 2016 first half period end for a combined total of $2.02 million. This was more than offset by the $2.55 million fair value uplift on the partial disposal of our investment in Depositphotos.

The following developments took place within the Company's portfolio in the first half of 2016:

Cash and partial cash exits, and positive non-cash revaluations:

· As announced on 29 March 2016, the Company sold a sizable part of its holding in Depositphotos for a cash consideration of US$5.85 million (US$5.83 million net) to a private European investor. The transaction represented an approximately 5.5 times increase in the valuation of TMT's holding in Depositphotos since its original investments in 2011, 2012 and 2015, and an approximately US$2.55 million (or 18%) uplift in fair value compared to the previously reported amount as of 31 December 2015. The Company's remaining fully diluted equity stake in Depositphotos is approximately 16.7% which, with a carrying value of US$10.84 million, remains our largest investment at 23% of the total value of our investment portfolio.

Impairments and write-offs:

· In the first half of 2016, Whale Path, Inc. suspended its operations after not securing further funding. Accordingly, the Company incurred an impairment charge equal to 100% of the previously reported fair value of the Company's investment, as well as unpaid accumulated interest payable to TMT of approximately US$220,000 in total.

· Online advertising platform Adinch, in which TMT invested in 2013, has suffered from the challenging economic conditions in Russia in the last two years, as well as certain recent operating issues. Accordingly, the Board of TMT considers it prudent to incur an impairment charge equal to US$1.8 million, or 75% of the fair value of the Company's investment in Adinch reported as of 31 December 2015.

New investments

In the first half of 2016, the Company invested US$300,000 in wine-by-the-glass subscription club Vinebox, Inc. (www.getvinebox.com), US$150,000 in field service management software provider Send A Job Inc. (www.sendajob.com), as well as an additional US$200,000 in KitApps Inc., the provider of Attendify, the mobile app platform for the events industry (www.attendify.com).

NAV per share

The Company's net asset value per share as of 30 June 2016 was US$1.91 (unchanged from US$1.91 as of 31 December 2015).

Operating Expenses

In the first half of 2016, the Company's Administrative Expenses of US$476,814 were in line with the first half of 2015 level (US$484,113). A bonus scheme charge of US$837,361, related to the first year of the Company's bonus plan covering the period from 1 July 2015 to 30 June 2016, was incurred during the period.

Financial position

As of 30 June 2016, the Company had US$5.92 million in cash reserves (US$1.16 million at 31 December 2015). As of the date of this report, the Company has no debt and approximately US$5.02 million in cash reserves.

Events after the reporting period and outlook

In July 2016, the Company invested US$300,000 in cloud-based PC emulator Sixa, Inc. (www.sixa.io). In August 2016, the Company invested an additional US$200,000 in native video advertising platform Virool, Inc. (www.virool.com) and US$300,000 in Theirapp, Inc., developer of APPrise-branded mobile apps for the public relations, investor relations, and corporate communications industries (www.apprise-mobile.com).

With many of our portfolio companies experiencing rapid growth, we expect a number of positive revaluations of our investee companies in the future, as we achieve exits or investee companies complete future equity financing rounds, and will update shareholders as appropriate.

Statement of Comprehensive Income

Statement of Financial Position

Statement of Cash Flows

Statement of Changes in Equity

NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2016

1. Company information

TMT Investments Plc ("TMT" or the "Company") is a company incorporated in Jersey with its registered office at Queensway House, Hilgrove Street, St Helier, JE1 1ES, Channel Islands.

The Company was incorporated and registered on 30 September 2010 in Jersey under the Companies (Jersey) Law 1991 with registration number 106628 under the name TMT Investments Limited. The Company obtained consent from the Jersey Financial Services Commission pursuant to the Control of Borrowing (Jersey) Order 1985 on 30 September 2010. On 1 December 2010 the Company re-registered as a public company and changed its name to TMT Investments PLC.

The memorandum and articles of association of the Company do not restrict its activities and therefore it has unlimited legal capacity. The Company's ability to implement its Investment Policy and achieve its desired returns will be limited by its ability to identify and acquire suitable investments. Suitable investment opportunities may not always be readily available.

The Company will seek to make investments in any region of the world.

The financial information relating to the six months ended 30 June 2016 is unaudited and does not constitute statutory accounts. The comparative figures for the financial year ended 31 December 2015 are not the Company's statutory accounts for that financial year. Statutory accounts for the year ended 31 December 2015 were approved by the Board of Directors on 18 March 2016. The report of the auditors on those accounts was unqualified, did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain any qualification.

These unaudited interim financial results were approved by the Board of Directors on 23 August 2016 and are available on the Company's website http://www.tmtinvestments.com/investor-relations/financial-reports/.

2. Summary of significant accounting policies

2.1 Basis of presentation

The accounting policies applied by the Company in these unaudited interim results are based on International Financial Reporting Standards as adopted by the European Union, including IAS 34 'Interim Financial Reporting', and in accordance with the accounting policies which are the same as those applied by the Company in its financial statements for the year ended 31 December 2015.

The Company's financial risk management objectives and policies are consistent with that disclosed in the financial statements for the year ended 31 December 2015.

For the purposes of IFRS 8 'Operating Segments' the Company currently has one segment, being 'Investing in the TMT sector'. No further operating segment financial information is therefore disclosed

2.2 Foreign currency translation

(a) Functional and presentation currency

Items included in the financial statements of the Company are measured in United States Dollars ('US dollars', 'USD' or 'US$'), which is the Company's functional and presentation currency.

(b) Transactions and balances

Foreign currency transactions are translated into US$ using the exchange rates prevailing at the dates of the transactions. Exchange differences arising from the translation at the year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.

3 Gain on investments

4 Segmental analysis

Geographic information

The Company has investments in six principal geographical areas - USA, Israel, BVI, Estonia, Cyprus, and Russia.

Non-current financial assets

As at 31/12/2015

As at 30/06/2016

5 Administrative expenses

Administrative expenses include the following amounts:

6 Staff expenses

Wages and salaries shown above include salaries and bonuses relating to the six months ended 30 June. These costs are included in administrative expenses. There are no employment expenses for share-based payments (for the six months ended 30 June 2015: $27,349).

The average number of staff employed (excluding Directors) by the Company during the six months ended 30 June was 5 (for the year ended 31 December 2015: 5).

The Directors' fees for the six months ended 30 June 2016 and 2015 were as follows:

The Directors' fees shown above are all classified as 'short term employment benefits' under International Accounting Standard 24. The Directors do not receive any pension contributions or other benefits.

Key management personnel of the Company are defined as those persons having authority and responsibility for the planning, directing and controlling the activities of the Company, directly or indirectly. Key management of the Company are therefore considered to be the Directors of the Company. There were no transactions with the key management, other than their Directors fees, bonuses and share options.

7 Net finance income

8 Income tax expense

The Company is incorporated in Jersey. No tax reconciliation note has been presented as the income tax rate for Jersey companies is 0%.

9 Profit / (loss) per share

The calculation of basic profit per share is based upon the net profit for the six months ended 30 June 2016 attributable to the ordinary shareholders of US$2,510,275 (for the six months ended 30 June 2015: net loss of US$465,023) and the weighted average number of ordinary shares outstanding calculated as follows:

The weighted average number of ordinary shares outstanding before and after adjustment for the effects of all dilutive potential ordinary shares calculated as follows:

The diluted profit / (loss) per share for both 2016 and 2015 is kept the same as the basic profit / (loss) per share because the conversion of the share options decreases the basic profit / (loss) per share and is therefore anti-dilutive.

10 Non-current financial assets

Reconciliation of fair value measurements of non-current financial assets:

Available-for-sale investments are carried at fair values. Where financial assets do not have a quoted market price in an active market and their fair values cannot be reliably measured they are measured at cost less any identified impairment losses at the end of reporting period, in accordance with IAS 39 para 46 (c) exemption.

Where there has been a relevant transaction during the year that gives an indication of the fair value of the unlisted shares, the shares are included at that fair value and the increase or decrease in fair value is recognised in the fair value reserve. The "price of recent investment" methodology is used mainly for investments in venture capital companies and includes cost of investment or valuation by reference to a subsequent financing round. Valuation increases above cost are only recognised if that round involved a new external investor and the company is meeting milestones set by investor.

(i) Equity investments as at 30 June 2016:

(ii) Convertible loan notes as at 30 June 2016:

11 Trade and other receivables

12 Cash and cash equivalents

The cash and cash equivalents as at 30 June 2016 include cash on hand and in banks, deposits, net of outstanding bank overdrafts. The effective interest rate at 30 June 2016 was 0.7%.

Cash and cash equivalents comprise the following:

The following table represents an analysis of cash and equivalents by rating agency designation based on Fitch rating or their equivalent:

13 Trade and other payables

14 Share capital

On 30 June 2016 the Company had an authorised share capital of unlimited shares of no par value and had issued share capital of:

15 Share-based payments

On 24 October 2012, Board of Directors approved a share option plan (the "Plan") for directors, officers, employees of or consultants to the Company and/or any company directly or indirectly controlled by the Company.

Under the Plan, options for a total of 7,500,000 ordinary shares in the Company, representing approximately 30% of the then issued share capital (or 23% of the enlarged share capital at the time, assuming full exercise of the options), could be made available at an exercise price determined by the Board or its remuneration committee, which would not be less than the closing middle market price for the Company's share on AIM on the date of grant as published by or on behalf of the London Stock Exchange plc.

Options were to vest on a daily basis over a period of 3 years whilst the option holder remains eligible, and vested options could be exercised on each anniversary of the grant, but if not exercised within 1 year from the allowable date of exercise, would lapse.

The following options, without performance conditions, have been granted under the Plan on 24 October 2012:

The fair value of services received in return for share options granted is based on the fair value of share options and warrants granted, measured using the Black-Scholes formula, using the following assumptions:

Expected volatility is estimated from the Company's share price performance on AIM.

16 Reserves

17 Related party transactions

Since May 2012, TMT's Moscow-based staff have been located in an office that belongs to a company ("Orgtekhnika") controlled by Mr. Alexander Morgulchik and Mr. German Kaplun, the Company's senior managers and applicable employees. German Kaplun also owns 9.64% of the issued share capital of TMT. Thus Orgtekhnika is considered a related party. Together with other related expenses (support personnel, company car, security services, etc.), the total office rent costs to TMT from 1 February 2015 were US$7,000 per month, and from 1 February 2016 temporarily reduced to zero.

18 Subsequent events

In July 2016, the Company invested US$300,000 in cloud-based PC emulator Sixa, Inc. (www.sixa.io). In August 2016, the Company invested an additional US$200,000 in native video advertising platform Virool, Inc. (www.virool.com) and US$300,000 in Theirapp, Inc., developer of APPrise-branded mobile apps for the public relations, investor relations, and corporate communications industries (www.apprise-mobile.com).